Tk 189bn in disputed taxes tie up large corps

Large corporations in Bangladesh are embroiled in 1,051 court cases involving disputed direct taxes totalling Tk 189.10 billion, according to the income tax department.
These cases fall into three categories: writ petitions, reference cases and leave to appeal applications.
According to a presentation of the Large Taxpayers Unit (LTU) under the income tax wing on Thursday, some 116 writ petitions filed by the big corporations challenge the legality of tax assessments amounting to Tk 6.16 billion.
There are 870 reference cases, which seek interpretation on tax matters, with Tk 173.85 billion at stake. Besides, 65 leave-to-appeal applications seek permission to appeal lower court decisions, totalling Tk 10.36 billion.
The LTU, the main collector of direct tax for the National Board of Revenue (NBR), compiled this data, including details of disputed tax refunds worth Tk 795.8 million.
This information was presented at an internal meeting on Thursday. The meeting, held at the LTU conference room at NBR headquarters, focused on resolving cases pending in the High Court.
Additional Attorney General SK Md Morshed was the keynote speaker. Commissioner of Taxes in LTU Md Iqbal Bahar chaired the session. Ahammad Ullah, income tax member of the legal and enforcement wing, was the chief guest, while Md Iqbal Hossain, member of the income tax appeal and exemption wing, was the special guest.
"The meeting was like an ice-breaker," said LTU Commissioner Md Iqbal Bahar after the meeting. "We want to work together with the Attorney General's Office more closely in order to quickly settle the cases."
Additional Attorney General Morshed suggested establishing better communication between the tax authorities and the Attorney General's Office to expedite case settlements.
A senior LTU official noted that a significant number of cases share similarities and could be resolved efficiently with appropriate action.
The official also proposed setting up separate legal wings within each tax zone to expedite case resolution.
Of the 870 reference cases, taxpayers have filed 476 worth Tk 87.18 billion, while tax authorities have filed 398 worth Tk 85.39 billion.

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